‘Refer-a-friend’ Promos: Are you covered?

Sometimes the rules and the ‘can’t do’s’ with regards to social media competitions and the running of them are very cloudy. And with a variety of different platforms that competitions can be run through, the rules feel even more blurred.

Social Media Knowledge, with the help of Gadens Lawyers, have put together an infographic (which you’ll find in the link below) around ‘Refer-A-Friend’ promotions specifically.

Below you’ll find some answers to questions about what to keep in mind when running this type of campaign.

SMK: Can you explain what a Refer-A-Friend promo is?

Allison Rickard: A refer-a-friend promotion is where consumers are encouraged to share details of a promotion with their friends, with an aim to having their friends participate in the promotion. Sometimes, a promoter may incentivise referrers who share with their friends.

SMK: Why did Gadens create this infographic?
AR: We receive a lot of questions from clients regarding refer-a-friend promotions – how to conduct them, what are the legal issues, what are the risks, etc.

The Spam Act regulator (the ACMA) has sometimes intervened when companies have run refer-a-friend promotions in the wrong way.

SMK: What should marketers be aware of before running a Refer-A-Friend promo?

AR: The primary issue is to ensure that the “friends” have provided consent in relation to receiving details about the promotion.

SMK: Is there anything else, from a legal standpoint, marketers should be aware of when running social campaigns?
AR: It’s important that the referrer (the entrant in the promotion) is personally involved in the sharing, e.g. writing the message to their friend; pressing the SEND button; the message coming from their email account, etc. Also, Facebook and Instagram have specific rules to consider when encouraging entrants to share or to tag others.